Infosys share price fell in morning trade on July 24, even as the IT services company’s latest financial numbers showed higher quarterly revenue and year-on-year profit growth.

Infosys Ltd shares were trading 2.05% lower at Rs 1,025.90 at 10:24 am on Friday. The company is part of the benchmark Nifty 50 index.

The decline came after a weak previous session for the broader market. At the preceding close, the Sensex had fallen 715.06 points, or 0.92%, to 76,755.05, while the Nifty had slipped 191.45 points, or 0.79%, to 23,996.25.

June quarter revenue climbs, profit falls from March quarter

For the quarter ended June 2026, Infosys reported consolidated revenue of Rs 48,211 crore. This was higher than the Rs 46,402 crore recorded in the March 2026 quarter and Rs 42,279 crore reported in the corresponding quarter a year earlier.

Consolidated net profit stood at Rs 7,775 crore. While profit was lower than the Rs 8,509 crore recorded in the immediately preceding quarter, it remained above the Rs 6,924 crore posted in June 2025.

Earnings per share for the latest quarter came in at Rs 19.19, compared with Rs 21.01 in March 2026 and Rs 16.70 in June 2025.

The figures present a mixed near-term picture. Revenue continued to expand, but sequential profit softened after the stronger March quarter. On a year-on-year basis, however, both revenue and net profit were higher.

Quarterly total income rose to Rs 49,195 crore from Rs 47,561 crore in March 2026. Total expenditure increased to Rs 38,048 crore from Rs 36,659 crore during the same period. Earnings before interest and tax stood at Rs 11,147 crore, up from Rs 10,902 crore in the previous quarter.

Annual revenue and profit maintain upward trajectory

Infosys reported consolidated revenue of Rs 178,650 crore for the year ended March 2026, compared with Rs 162,990 crore in March 2025 and Rs 153,670 crore in March 2024.

Annual net profit increased to Rs 29,474 crore from Rs 26,750 crore in the previous financial year. Basic earnings per share rose to Rs 71.58 from Rs 64.50.

The company’s total income reached Rs 182,972 crore in March 2026, while total expenditure stood at Rs 142,561 crore. EBIT was reported at Rs 40,411 crore, compared with Rs 38,024 crore in March 2025.

These numbers show that Infosys continued to expand its annual revenue and earnings base, even though quarterly profit performance remained uneven.

Profitability ratios remain firm

Infosys reported a net profit margin of 16.49% for the year ended March 2026, broadly in line with 16.41% in the previous year. Its operating margin stood at 23.34%.

Return on equity increased to 31.70% from 27.87%, while return on capital employed rose to 40.23% from 35.85%. The debt-to-equity ratio remained at 0.00.

The company’s price-to-earnings ratio was reported at 17.47 times for March 2026, compared with 24.35 times a year earlier. Its price-to-book ratio stood at 5.45 times, while the price-to-sales ratio was 2.84 times.

Cash flow and balance sheet

Cash generated from operating activities stood at Rs 33,986 crore in March 2026, compared with Rs 35,694 crore in March 2025.

Financing activities recorded an outflow of Rs 39,786 crore, while investing activities generated Rs 1,946 crore. The company reported a net cash outflow of Rs 2,254 crore for the year.

Total assets and total liabilities were both reported at Rs 155,967 crore as of March 2026. Current assets stood at Rs 103,489 crore, while current liabilities were Rs 52,322 crore. Reserves and surplus were recorded at Rs 90,828 crore.

Dividend and management developments

Infosys announced a final dividend of Rs 25 per share on April 24, 2026, with an effective date of June 10. This followed an interim dividend of Rs 23 per share announced in October 2025.

The company also announced the appointment of Ashiss Kumar Dash as Chief Executive Officer Designate, effective July 23, 2026.

What the latest numbers indicate

The fall in Infosys shares places attention on the contrast between its expanding revenue base and the sequential decline in quarterly profit. Annual earnings, margins and return ratios remained comparatively firm, while the company continued to report a debt-to-equity ratio of zero.

With the stock at Rs 1,025.90 during morning trading, investors are likely to closely assess whether revenue growth can translate into steadier profit expansion in the coming quarters.

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Disclaimer: This report is for informational purposes only and does not constitute investment advice.